This is old information. However a must read for new investors. It is important to know thy company and its founders as well as some history that you are investing in. I am long the stock and think 5 or 10 bucks a share is possible. I think the earnings will be ok. They just squeeked buy last q and theres no reason ta think things are bad out of hand any way. I think Paul stepped down on advise from others. Main reason is the street dont like ex coke/crack heads. Although many may abuse drugs themselves it generally isnt made public on the leval of mr Guez This kinda press is hard to live down even though 18 years later it still surfaces Exerts from a artical by Seth Lubove Paul Guez, Denim King, Bounces Back From Cocaine, Bankruptcy
By Seth Lubove
Aug. 3 (Bloomberg) -- It's hard to say when the cocaine made Paul Guez go completely crazy.
It could have been in 1988, when Guez was hauled away in handcuffs by Federal Bureau of Investigation agents after allegedly threatening to kill the judge overseeing the bankruptcy of his Sasson Jeans Inc. Maybe it was in 1987, when he was accused of assaulting two U.S. marshals who were attempting to seize Sasson's business records. (In both instances, Guez was later acquitted.)
Then there was the lawsuit against his brothers Gerard and Hubert in 1986, blaming them for illegally using the Sasson name. (The three eventually settled.) And the time Guez was arrested in 1984 for allegedly tapping the phones of his estranged wife. (A New York grand jury declined to indict him.)
Whatever the case, by 1988, Guez was left as penniless as when he arrived in the U.S. from France in 1976 with some samples of tight, French-cut jeans that would serve as the basis for Sasson.
``The empire did not implode,'' Guez, 61, says. ``It was me. I had severe drug and alcohol addictions.''
Clean and sober now for 18 years, Guez has bounced back in time for the fashion world's latest fling with designer denim. He's built a new company, Los Angeles-based Blue Holdings Inc. and controls or owns stakes in a sprawling network of premium jeans brands, retail stores and Mexican contract manufacturing plants.
Guez has made a fortune by taking Blue Holdings public on the Nasdaq Stock Market. With the stock trading at $5 on Aug. 2, Guez's 72 percent stake was worth about $93.3 million. Once broke, he now lives in a beachfront house in Santa Monica, California, and travels by private jet.
Guez got back in the game in 2001, just as the market for primo jeans took off. Since then, jeans from brands such as 7 For All Mankind, which go for $150 a pair, have become de rigueur for dressed-down celebrities. Luxury jeans are often made to look well-worn. They come scuffed, ripped, punctured, patched and even splattered with paint. Full story below link. This is old news but telling in my view of why the stock is trading at these low actually redic levals even after the 1 fo 29 split Jul-05 10.25 10.25 5.65 7.20 7,500 7.20 7-Jun-05 1 : 29 Stock Split Jun-05 0.27 11.90 0.27 10.35 21,900 10.35 ~ZONE~
how many times do you need to post this. old story nothing new. LA guy comes back from drug problem tonight on acess hollywood. Maybe if you said that guez "brings on new team to help grow bussiness" or "Guez has learned to delegate while he works on branding and design" that would be useful. But you have to bring up a 20 year old drug problem as if that counts more than sales or earnings.
It looks to me like guez lost focus in the second half of last year because of the merger with Long Rap inc. trying to grow too fast thru retail outlets. He has now brought on a new team to help grow the brands and with cutting costs.
bring up drug problems from when you were in diapers is dumb and a personal attack.
So i didnt read your whole post. The only reason i be posting the story even though old is that guez old habits die hard i am not judgeing him in fact i am glad he got his act together more power to him. Fact are this type of press public and quite damming can really hurt the rep of a co.It also makes the co a very hard sell actuallt impossible for anyone hocking the shares. Just imagine if your financial professional said you should invest in this co and then you find this information doing a random search. It is quite obvious why the pps is so low a 1 for 29 split in 05 to prop the price above five no workey. In addition insider deals such as the one also mentioned in the Lubove research Guez has cut millions of dollars in deals among companies he controls or owns stakes in. In 2005, Blue Holdings bought $3 million of fabric and finished goods from Blue Concept LLC, another company Guez controls.
Blue Holdings also pays Blue Concept a monthly fee of $78,500 for human resources, sales, purchasing and other services, according to SEC filings. Blue Holdings paid another company, Azteca Production International Inc., $2 million in 2005 for ``sewing and processing charges,'' according to a proxy statement filed with the SEC in April. Guez and his brother Hubert control Azteca, a Mexican contract manufacturing firm.
Guez, Hubert and their brother Gerard have undertaken similar transactions. Guez and Hubert, for example, control 4.8 million shares, or about 12.5 percent, of Commerce, California-based Innovo Group Inc., which makes Joe's designer denim. Innovo bought $64 million of goods from Azteca last year, or 68 percent of its total supplies, according to Innovo's 10-K filing with the SEC. Gerard is chairman and 39 percent owner of Los Angeles-based Tarrant Apparel Group, which bought $49 million of goods and services from Azteca from 2003 to '05, according to Tarrant Apparel's 10-K.
``I don't like them,'' Beder says of such insider deals. ``Paul has one more big entity in him, and this is his big run. It has to be super-efficient and really squeaky clean to get the respect that he craves and deserves.'' It does appear that you at least read the story and that is good IMHO it is a good piece of research that any investor should read prior to taking a position in a risky penny play such as BLUE I bought becouse of brand control and Blue is my favorite color. I did like your post about guez stepping down to concentrate on design although this may not be his strong point. I think cutting deals through contacts is and will be his main function. Hopefully Glenn Palmer will be able to raise this up from the haze and saturated high end jean market. Carry on with intellegent posts Best reguards ~ZONE~